Greenpeace has accused the Australian government of bailing out Southern Pacific Petroleum and an "uneconomic" and environmentally "destructive" oil shale industry.

Greenpeace said the bailout comes despite the Government already offering more than $300 million in subsidies to the project.

"It's an outrage that the Federal Government is wasting taxpayers' money to bail out a private sector project which is uneconomic and environmentally destructive," said Greenpeace climate campaigner, Mr Gareth Walton.

"The Government should be investing this money in clean renewable energy that provides jobs without destroying the environment.

"Although the Government has bailed out SPP, oil shale's future is still uncertain. SPP has to achieve three significant milestones before the Stuart Project can proceed to the next stage - a new partner to replace Suncor, $500 million in funding and government approval - none of which are guaranteed.

"The fact that the Government has had to bail out the Stuart Project is a clear signal to any potential partners or investors that oil shale is uneconomic, as well as causing significant environmental damage.

"Oil shale is a greenhouse gas disaster, it threatens the Great Barrier Reef World Heritage Area, is a massive source of toxic dioxins and has made local people sick from air pollution," Mr Walton said.

Despite Greenpeace's protestations, Southern Pacific's share price finished 8 cents higher to finish at 66c following a high of 74c for the day. Prior to the withdrawal of Canadian technology partner Suncor in April of last year, SPP shares were trading at $2.